SINGAPORE, 5 NOVEMBER 2024 — StraitsX, the pioneering payments infrastructure for the digital assets space in Southeast Asia, has announced its groundbreaking initiative with Ant International and Grab. This collaborative effort aims to enable more efficient funds transfer via Purpose Bound Money (PBM) when inbound tourists use Alipay+ payment partner apps for payments at GrabPay merchants in Singapore.
The partnership, first outlined in a Memorandum of Understanding (MOU) at the 2023 Singapore Fintech Festival, has now culminated in the deployment of a cross-border, stablecoin-powered payment system. The payment system has been made possible through the use of blockchain technology, including the Avalanche network, to power backend payment acceptance flows with PBM¹.
International users across Alipay+ payment partners can then transact at participating GrabPay merchants in Singapore. The use of PBM is also expected to keep payment processing costs consistent for GrabPay merchants in Singapore and international payment apps in the Alipay+ ecosystem.
Poised for significant expansion, Southeast Asia's cross-border e-commerce revenue is projected to reach US$148 billion by 2027, underscoring the need for small and medium enterprises (SMEs) to adopt more efficient and convenient payment methods. This shift in consumer preferences, catalysed by technological advancements, has fueled a burgeoning demand for innovative financial solutions, including stablecoins, digital currencies, and purpose-bound money, as SMEs and consumers alike seek alternatives that offer competitive exchange rates, enhanced convenience, and greater access to financial services.
Speaking on the partnership, Tianwei Liu, CEO and Co-Founder of StraitsX, said: “Embarking on this journey with Ant International and Grab has been remarkable and as we combine our expertise, market reach, and technological capabilities, we are confident that this joint effort will foster greater access to digital financial solutions for SMEs and consumers alike. Building a cross-border payment solution using blockchain technology to enable a seamless cross-border payment experience has been our mission since day one. Through this, we also hope to connect the diverse economies in Asia together to bring to reality a connected and inclusive digital economy.”
With tourist arrivals reaching 13.6 million in 2023 and up to 16.5 million in 2024, this solution positions merchants to capitalise on the anticipated surge in inbound tourist spending.
Kell Jay Lim, Regional Head of GrabFin at Grab, said, “Our partnership with Ant International and StraitsX is part of our ongoing efforts to minimise friction and enhance the payment experience for consumers and small businesses on our platform. Currency exchange can often be a pain point for tourists. With this collaboration, visitors to Singapore can now enjoy the convenience of using their preferred wallet when paying at any restaurant or retail merchant displaying the GrabPay QR. This also provides these merchants with immediate Singapore dollar settlement, improving cash flow and reducing the complexities associated with foreign currency transactions.”
Alipay+ further expands its acceptance in Singapore, and inbound tourists from 9 countries and regions can use their home payment apps to make purchases at any GrabPay merchant, charged in their local currency. In addition, GrabPay merchants will be able to receive payment in local Singapore dollars. This allows merchants and consumers to send and receive payment in their respective local currencies instantly.
Edward Yue, General Manager, Southeast Asia, Australia and New Zealand, Ant International, said, “We are proud to partner with StraitsX and Grab on this innovative solution. Our partnership gives global travelers even greater convenience when paying with their home payment app while in Singapore as we welcome GrabPay merchants, which include some of the most beloved local brands. Additionally, we are facilitating more efficient, secure, and lower-cost funds transfer, and look forward to playing our part to enhance consumer and merchant experiences through innovation.”
Ant International is a global digital payment and financial services leader that aims to power the future of global commerce through a range of digital innovations. It operates Alipay+, a cross-border mobile payment and digitalisation platform that connects 1.6 billion consumers from over 30 payment partners to more than 90 million merchants in 66 markets. Alipay+ is widely accepted in top global destinations including Singapore, Malaysia, Thailand, Japan, South Korea, the Chinese mainland, Hong Kong SAR, Europe, and more.
Grab is a leading super-app in Southeast Asia, operating across the delivery, mobility, and digital financial services sectors. Central to its offerings is GrabPay, a digital wallet that allows users to conduct cashless transactions for Grab-registered merchants within the app, enhancing convenience and accessibility.
By combining the regional network and technological prowess of all three companies, this solution is set to play an instrumental role in creating a sustainable and inclusive financial ecosystem that benefits all stakeholders at each level of the payment journey — from consumers and small businesses to the broader Asian economy.
¹Purpose Bound Money is a protocol that specifies the conditions upon which an underlying digital currency (such as stablecoins) can be used.
StraitsX is the pioneering payments infrastructure for the digital assets space in Southeast Asia. StraitsX is a Major Payment Institution licensed by the Monetary Authority of Singapore and is part of Fazz's ecosystem of financial services which powers business banking in Southeast Asia. StraitsX offers personal and business account holders to mint and redeem StraitsX stablecoins, manage payments as well as connect their accounts to digital asset platforms. Business accounts can also access B2B API-enabled payment rails for digital asset platforms.
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